Canada Reports Buoyant Revenue Growth

by Mike Godfrey, Tax-News.com, Washington

27 December 2017

Canadian tax revenues were up 4.8 percent for the first seven months of 2017, according to the Government's latest Fiscal Monitor.

The Canadian budget deficit has fallen. It was CAD6.3bn during the April to October period, compared with CAD9.3bn in the same period during the 2016-17 fiscal year.

Both personal and corporate income tax revenues performed strongly, up 5.4 percent and 8.7 percent, respectively. Excise taxes and duties were up 9.2 percent, and goods and services tax (GST) revenues rose by 12.3 percent year-on-year.

However, Employment Insurance (EI) premiums were down 11.8 percent, with the Government attributing this to a decline in the EI premium rate as a result of the seven-year break-even mechanism introduced in 2017.

Revenues for the month of October were likewise strong. Totaling CAD25.5bn, revenues were up four percent on October 2016. Personal income tax revenues rose by only 0.3 percent and corporate tax revenues increased by 18.8 percent.

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